According to recent data from CryptoQuant, a firm that provides on-chain and market analytics, more Bitcoin (BTC) was withdrawn from Binance in 1 day than ever before. Binance is considered the world’s largest blockchain ecosystem and digital asset exchange by trading volume.
Cryptocurrency Exchange Binance Is 55,000 BTC Lighter
BTC surged to a six-week high as the cryptocurrency returned to record buying levels and broke above $20,000. Momentum builds as the total value of all cryptocurrencies crossed the $1 trillion mark once again.
On October 26, Binance, the world’s largest exchange by volume, noticed a net position change of over 55,000 BTC from their platform. The recent outflows have topped all other buying sprees, including the March 2020 crash and the $17,600 dip in June this year which is the 52-week low.
Binh Dang, a contributor to CryptoQuant, also noted that the derivatives exchange outflows broke multi-month records. As shared on his Quicktake posts, the figure of 71,579 BTC marked the most significant amount of coins flowing out on Binance. The figure contributes to bringing the outflow of BTC from derivatives exchanges to 94,024 BTC, the most impressive number since July. Consequently, this helped drastically reduce total reserves on derivatives exchanges since the price of Bitcoin fell in May. He pointed out that such derivatives outflows similarly accompanied a decrease in sell-side pressure on BTC from a wide-range perspective.
CryptoQuant Contributor: Don’t Get Excited, Bitcoin Is Still In A Bear Market
Bitcoin moved to a substantial rise after a long period of consolidation. CryptoQuant contributor, IT Tech cautioned that the current run-up in cryptocurrency prices might not last long. Warning that the bear markets still persist as it phase takes months or years. From his point of view, he shared that it could mean a sort of fake pump before the Federal Open Market Committee (FOMC) meeting on November 2022. He also highlighted an inverse relationship between BTC and the DXY, the US Dollar (USD) strength index, which helped the S&P 500 and BTC rally as the DXY on the other hand is going down.